National Aluminium Company Ltd Sees Sharp Open Interest Surge Amid Strong Market Momentum

Open Interest and Volume Dynamics

On 6 January 2026, NATIONALUM’s open interest (OI) in derivatives rose sharply by 9,115 contracts, a 29.81% increase from the previous day’s 30,577 to 39,692. This substantial rise in OI was accompanied by a volume of 96,092 contracts, indicating active participation in the futures and options market. The futures value stood at ₹1,02,760.48 lakhs, while the options segment contributed an enormous ₹11,88,35,16,4950 in value, culminating in a total derivatives market value of approximately ₹1,30,756.75 lakhs.

The underlying stock price also reflected bullish momentum, hitting a new 52-week high of ₹351.7 during intraday trading, marking a 6.32% gain on the day. This price surge outperformed the Aluminium & Aluminium Products sector, which gained 2.55%, and the broader Sensex, which declined by 0.37%. NATIONALUM’s outperformance by 2.32% relative to its sector highlights its strong market positioning amid sectoral strength.

Market Positioning and Directional Bets

The sharp increase in open interest alongside rising prices typically signals fresh long positions being established, suggesting bullish sentiment among market participants. NATIONALUM’s consecutive four-day gain, delivering a 10.5% return over this period, further corroborates this positive outlook. The stock is trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – reinforcing the strength of the uptrend.

Interestingly, despite the strong price and derivatives activity, delivery volumes have declined by 13.26% against the five-day average, with 57.39 lakh shares delivered on 5 January. This divergence between derivatives activity and physical delivery volumes may indicate speculative positioning rather than long-term accumulation by investors.

Mojo Score Upgrade and Market Capitalisation Context

National Aluminium Company Ltd’s recent upgrade in its Mojo Grade from Buy to Strong Buy on 11 November 2025 reflects improved fundamentals and positive market sentiment. The company holds a robust Mojo Score of 85.0, signalling strong financial health and growth prospects. With a market capitalisation of ₹63,052 crore, NATIONALUM is classified as a mid-cap stock, offering a blend of growth potential and relative stability within the non-ferrous metals sector.

The stock’s liquidity remains adequate for sizeable trades, with a 2% threshold of the five-day average traded value allowing for trade sizes up to ₹10.46 crore without significant market impact. This liquidity supports active participation by institutional and retail investors alike.

Sectoral and Dividend Yield Considerations

The Aluminium & Aluminium Products sector has gained 2.55% recently, with NATIONALUM outperforming this benchmark. The company also offers a healthy dividend yield of 3.17% at current prices, which adds to its appeal for income-focused investors amid the ongoing rally. This combination of capital appreciation and dividend income enhances the stock’s attractiveness in a volatile market environment.

Interpreting the Open Interest Surge

The near 30% jump in open interest is a critical indicator of increased market participation and confidence in the stock’s upward trajectory. Such a surge often precedes sustained price movements, as fresh capital flows into the derivatives market to capitalise on anticipated gains. The elevated futures and options values underscore the magnitude of speculative and hedging activity, with traders positioning for further upside.

However, the decline in delivery volumes suggests caution, as it may imply that the rally is currently driven more by short-term traders than by long-term investors. This dynamic warrants close monitoring, especially for investors considering exposure to NATIONALUM at these elevated levels.

Outlook and Investor Implications

Given the strong open interest growth, price momentum, and upgraded Mojo Grade, National Aluminium Company Ltd appears well-positioned for continued gains in the near term. The stock’s ability to sustain above key moving averages and outperform its sector suggests robust underlying demand.

Investors should, however, remain vigilant about the divergence between derivatives activity and physical delivery volumes, which may indicate speculative excess. Monitoring upcoming quarterly results, global aluminium price trends, and sectoral developments will be crucial to validate the sustainability of the current rally.

Overall, NATIONALUM’s recent market behaviour signals a bullish consensus among traders, supported by solid fundamentals and sector tailwinds. The stock’s strong dividend yield and mid-cap status further enhance its appeal for a balanced portfolio seeking growth and income.

Technical and Fundamental Summary

To summarise, National Aluminium Company Ltd’s key metrics as of 6 January 2026 are:

• Open Interest: 39,692 contracts (up 29.81%)


• Volume: 96,092 contracts


• Futures & Options Market Value: ₹1,30,756.75 lakhs


• Stock Price: ₹351.7 (new 52-week high)


• Mojo Score: 85.0 (Strong Buy, upgraded from Buy)


• Market Cap: ₹63,052 crore (Mid Cap)


• Dividend Yield: 3.17%


• Sector Performance: +2.55%


• Sensex Performance: -0.37%

These figures collectively point to a stock in strong demand, with market participants positioning for further appreciation while balancing income considerations.

Conclusion

National Aluminium Company Ltd’s recent surge in open interest and volume in the derivatives market, coupled with its price breakout and fundamental upgrades, mark it as a compelling stock to watch in the non-ferrous metals sector. While speculative activity is evident, the underlying strength and sectoral tailwinds provide a solid foundation for sustained gains. Investors should consider this stock’s evolving market positioning and technical signals as part of a broader investment strategy focused on mid-cap growth opportunities with income potential.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today